The Julius Baer Global Wealth and Lifestyle Report 2026 offers a fascinating glimpse into the complex world of high-net-worth individuals (HNWIs) and their evolving priorities. This year's report, published against a backdrop of geopolitical turmoil and economic uncertainty, reveals intriguing trends that challenge conventional notions of wealth and luxury.
One of the most striking findings is the significant impact of currency fluctuations on the cost of living for HNWIs. The report highlights how cities linked to appreciating currencies, such as the Swiss franc and the euro, have climbed the rankings, while those tied to the US dollar have lost ground. This shift underscores the importance of currency management for globally mobile individuals, as it directly affects their purchasing power and financial strategies.
Singapore, a perennial favorite among HNWIs, remains the most expensive city for the fourth consecutive year. However, the report delves deeper into the reasons behind this status. It attributes Singapore's high cost of living to factors such as residential property prices, car costs, and the strength of the Singapore dollar. Despite local price changes remaining relatively stable, the city's strong currency ensures that costs rise in line with the global average when measured in US dollars.
The rise of Zurich to the second most expensive city is particularly noteworthy. This increase is driven less by local price hikes than by the appreciation of the Swiss franc against the US dollar. Similarly, Monaco's entry into the top three is supported by the strength of the euro and its exceptionally high residential property prices. These findings highlight the intricate relationship between currency, real estate, and the cost of living for HNWIs.
The Asia Pacific region continues to be a powerhouse of global affluence, with five cities in the top ten. However, Sydney stands out as this year's highest climber, rising six places to eighth due to a combination of the strong Australian dollar and the elevated cost of importing premium goods. Despite this, average prices across APAC rose by 7.4% in US dollar terms, which is below the global average, indicating a nuanced picture of wealth distribution.
Europe, known for its high cost of living, saw price increases across its cities averaging 14.1% in US dollar terms, well above the global average. This is largely attributed to the strength of the euro and Swiss franc. Zurich, Monaco, Paris, Milan, and Frankfurt all climbed the rankings, while Barcelona remained unchanged. London, however, fell to fifth place as the British pound followed a similar trajectory to the US dollar, limiting its relative increase compared to mainland European locations.
The Middle East region's narrative is more about context than findings. Dubai, despite its notable drop in the index, is explained by other cities becoming more expensive rather than Dubai becoming more affordable. The dirham's peg to the US dollar has significantly impacted the city's positioning. Importantly, the report notes that data collection was completed before the outbreak of the Iran-conflict, meaning the current situation in the Middle East is not reflected in the findings.
In the Americas, New York remains the highest-ranked city, followed by São Paulo, which rose to 12th place. Santiago de Chile and Mexico City also climbed, supported by strong local price growth and currency movements. The region remains highly differentiated, with North America showing strong wealth accumulation and stable investment behavior, while Latin America displays greater caution and a focus on preserving purchasing power.
The report also highlights the role of raw material costs in the luxury goods market. The price of gold has more than doubled since 2024, impacting luxury categories such as jewelry and watches. Luxury goods prices have risen across the board, with an average increase of 12.3%, reflecting higher input costs, skilled labor, and strategic pricing by global brands. This trend has implications for HNWIs' spending habits and investment strategies.
The Julius Baer Lifestyle Survey provides further insights into the lives and consumption patterns of HNWIs. Geopolitical uncertainty has become a universal concern, influencing spending, planning, and investment decisions. The survey reveals a two-speed luxury economy, with APAC and the Middle East leading in spending, while Europe shows the highest levels of spending contraction. Health-related expenditure has surged, confirming the trend of affluent individuals prioritizing health and longevity.
HNWIs are also adapting their consumption behavior in response to tariffs, currency movements, and global uncertainty. A significant portion of respondents have changed the geographic origin of their luxury purchases, and many are willing to travel internationally to bypass tariffs. Investment behavior has shifted, with HNWIs modifying portfolios to address macroeconomic and political risks. APAC investors lead in adaptive behavior, while Middle Eastern investors show well-diversified, long-term focused portfolios.
In conclusion, the 2026 Global Wealth and Lifestyle Report highlights the multifaceted nature of wealth in the modern world. It extends beyond financial assets, encompassing lifestyle, security, health, mobility, and intergenerational harmony. As HNWIs navigate a rapidly changing global landscape, their strategies must adapt to currency fluctuations, geopolitical risks, and evolving consumption patterns. This report serves as a valuable guide for wealth managers and investors, offering insights into the complex interplay between wealth, lifestyle, and the global economy.
